Ford Motor Company

Ford Motor Company Case IV

Taylor Hollis

Siena Heights University

BAM 479 Strategic Management

Professor Harvel-Jenkins

November 20, 2020

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Case Statement

Ford Motor Company will face challenges in emerging markets and with extreme
competitive pressures. Ford faces net income declination as well as concerns over
declining sales and slow innovation processes. Ford will maintain ethical standards
and continue to develop new revenue options.

Vision Statement

To become the world’s leading consumer company for automotive products and

services.

Mission Statement

Our mission is to strengthen communities and help make people’s live better.

Our purpose is to drive human progress through freedom of movement.

One Ford: Align employee efforts toward a common definition of success and

optimize their collective strengths worldwide.

One team: Work together as one team to achieve automotive leadership, which

is measured by the satisfaction of our customers, employees, and essential business

partners, such as our dealers, investors, suppliers, unions/council, and communities.

One plan: Aggressively restructure to operate profitability at the current demand

and changing model mix.

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One goal: Create an exciting and viable company delivering profitable growth for

all. (David & David, 2017).

Mission Table Evaluation

Table 1 Mission Table Evaluation Matrix

Customers Products/ Markets Technology Concern for

Services Survival,
Growth &
Profitability

Yes Yes Yes No Yes

Philosophy Self-Concept Concern for Concern for

Public Image Employees

Yes Yes Yes Yes

Per Strategic Management, there are 9 components of a mission statement as

stated; customers, products/services, markets, technology, survival, growth,

profitability, philosophy, self-concept, public image, and employees. (David & David,

2017). These are the components that the business relies on for everyday use and

especially, for the future. Satisfied components of Ford Motor Company’s mission

statement are as follows; customers, products/services, markets, concern for survival,

growth & profitability, philosophy, concern for public image and concern for employees.

The mission statement could be enhanced by adding the component that it lacked;

technology.

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Customers are identified within the mission statement, Ford Motor Company

measures by the satisfaction of the customer along with helping make peoples lives

better.

Products and Services are identified, the company intends to work together as a

team to achieve automotive leadership. Also by providing motivation for humans to

progress in freedom.

Market is acknowledged, as it is stated that the company works with customers,

partners, dealers, investors, unions/council, suppliers, and communities worldwide.

Concern for survival, growth and profitability is also addressed in the mission

statement by acknowledging their pursuit in restructuring to operate profitability and

intentions in changing the model mix.

Technology is not identified within the mission statement. As dependent as the

company is on technology, it is shocking that it is not stated. If they were to include

this, the outcome could have a more significant impact on the consumer.

Self-concept is addressed when Ford’s statement included strengthening

communities and helping make people’s lives better. Ford relay’s their self-concept by

bettering others.

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Philosophy is integrated by the attitude presented in the mission statement;

aligning employees with successes, working together as one team and creating an

exciting and viable company.

Ford Motor Company does cover concern for public image. taking the

community into account and collectively working together as one.

The mission statement does cover concern for employees, “Align employee

efforts towards a common definition of success and optimize their collective strengths

worldwide.”

Milestones

The Ford Motor Company is an American multinational automaker headquartered in

Dearborn, Michigan; a suburb of Detroit. It was founded by Henry Ford and

incorporated on June 16, 1903. Ford has been very much involved in the development

of transportation for our nation.

• In 1914, Henry Ford started an industrial revolution by more than doubling wages

to $5 a day. This move helped build the U.S. middle class and the modern

economy. The business model Ford developed consisted of production on a

grand scale performed by well-paid workers. Shortly after, he contributed to the

manufacturing process by developing a “moving assembly line”, where workers

can stay in one place and perform the same task repeatedly on multiple vehicles

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that passed by them. This contribution proved to be tremendously efficient,

assisting the company to surpass the production levels of its competitors, while

making vehicles more affordable. (Ford Motor Company, 2020).

• Beginning in 1932, Ford produced it’s own brand of alternative fuel called

“Benzol”. Henry Ford preferred harnessing nature as an energy source and using

zero-emission hydroelectric energy. During the Great Depression, Henry Ford

looked for ways to recycle waste created by his factories and to help relieve the

fuel burden on the public. Fast forward into the early 21st century, more than 90

percent of the alternative fuel vehicles sold in the world are Fords. The goal is still

to develop transportation that is sustainable, affordable and practical for use by

millions of people around the world. (Ford Motor Company, 2020).

• In 1918, the U.S. government commissioned Ford Motor Company to build the

Eagle Boats, supplying the allies’ needs, for World War I. The company also

assisted with production of helmets, tanks, airplane engines, ambulance and

Fordson tractors. Civilian production temporarily ceased many times to support

the Allied war effort. (Ford Motor Company, 2020).

• Ford Aerospace was the prime contractor for implementation of the Mission

Control Center for NASA during the Gemini and Apollo space programs. The work

entailed technical management in the areas of vehicle systems, flight dynamics,

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life styles, flight crew activities, recovery support and ground network operations.

Over the years, Ford Aerospace continued to provide the U.S. Department of

Defense and NASA with satellite control systems and ground terminals. In

October 1990, Ford Aerospace was sold to Loral Corporation for $715 million,

ending the company’s involvement in space technology. (Ford Motor Company,

2020).

• In 1914, the first contract with the union (United Automobile Workers) was signed.

Ford considered the unionization of his company as his “greatest disappointment”

in business, however, the union proceeded to work together over the decades to

ensure continually improving conditions for workers. The UAW grew and

strengthened, securing pensions and health benefits. In the 1980s, Ford and the

UAW strengthened their relationship through joint policies and programs focused

on quality, production methods, and workers and their families. (Ford Motor

Company, 2020).

External Factor Assessment

Using the External Factor Evaluation Matrix allows strategists to summarize and

evaluate economic, social, cultural, demographic, environmental, political,

governmental, legal, technological, and competitive information. (David & David,

2017).

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Key External Factors Weight Rating Weighted Score

Opportunities
1. Green Vehicles 0.15 3 0.45

2. Increasing fuel prices 0.10 3 0.30

3. New emission standards 0.025 2 0.05
4. Strategic partnership 0.10 2 0.20

5. New taxation policy 0.05 1 0.05

6. Increasing customer base 0.050 4 0.60
7. Self-driving car 0.15 4 0.60

8. Global market share grew to 7.6% 0.10 3 0.30

Threats
1. Decreasing fuel prices 0.05 1 0.10

2. Rising raw material prices 0.05 2 0.10

3. Intense competition 0.025 2 0.14
4. Fluctuating exchange rates 0.05 2 0.10

5. Increasing trend of isolationism 0.025 3 0.10

6. Regulations 0.05 2 0.10
7. Growing presences of German and Japanese 0.025 2 0.050
automakers

TOTAL 1.00 2.64

Opportunities:

Reflecting on the EFE above, Ford Motor Company has several great

opportunities to improve their position in the industry.

Environmental opportunities are present when reviewing Ford Motor Company.

They exemplify an innovative attitude towards “green” vehicles. Customers are

knowledgable that cars release large quantities of CO2 and affect the environment

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negatively. Ford has developed a strategy to reduce the carbon dioxide released from

the vehicles, which in turn, makes them more efficient. They can build vehicles that run

on different forms of energy. They have more options in designing eco-friendly

vehicles. The 2018’s C-Max and Fusion Hybrid car model can be their most significant

opportunity, as they have already captured the market with this new model.

Ford maintains a strong emphasis on engineering fuel-efficient vehicles. These

flexible fuel and hybrid engines will resolve the increasing fuel prices dilemma.

New emission standards would improve their position on the industry. Ford’s

position in the automobile industry would be affected by stricter regulations pertaining

to vehicle emission standards.

Ford has established ultimate strategic partnerships with other automobile

companies. All companies are more likely to enter into such partnerships to drive R&D

costs down, approach new markets and gain new skills due to current competitive

pressure.

The new taxation policy can significantly impact the way of doing business and

can open new opportunity for established players such as Ford to increase its

profitability.

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Ford is working on penetrating the automobile market in India and China. They

have an excellent opportunity to tap into other small countries in the world and grow

their customer base. The adoption of new technology standard and government free

trade agreement has provided Ford Motor Company an opportunity to enter new

emerging markets.

In 2017, Ford has invested $1 Billion in Artificial Intelligence company, Argo AI,

to develop its self-driving technology. In addition, Ford has partnered with Walmart

and Postmates to test the future of grocery delivery. The new automotive technologies

could increase demand for new models and sales. Could also increase interest in car

purchases.

Global market share grew to 7.6 percent, up one-tenth percent from the

previous year.

Threats:

Decreasing fuel prices could limit demand for costlier alternative fuel vehicles

such as hybrids and electrics. This would negatively affect Ford and its focus on fuel-

efficiency.

Increase prices of raw materials such as steel and raw metals can directly affect

the company’s cost and profit margin.

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The automotive industry is intense with competition. Ford is struggling to

maintain its innovation position in the industry competing with its rival companies;

Toyota and Tesla. Stable profitability has increased the automotive industries over the

last two years which has put downward pressure on profitability and overall sales.

As the company is operating in numerous countries it is exposed to currency

fluctuations especially given the volatile political climate in number of markets across

the world.

The increasing trend toward isolationism in the American economy can lead to

similar reaction from other government, in turn, negatively impacting the international

sales.

The compliance and regulatory threats for automobile brands have increased in

the past years because of the environmental improvements going around the world.

Vehicles are not inspected for public safety and quality issues. Ford can face serious

challenges if it fails to comply with the new regulations.

The growing presence of German and Japanese automakers in the North

American auto market, particularly Volkswagen and Toyota. Toyota is now competing

directly with Ford in the pickup truck market, and Volkswagen is considering entering

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that market. Mercedes and Nissan are now competing directly with Ford in the

commercial van market.

Internal Assessment

Key Internal Factors Weight Rating Weighted Score

Strengths
1. Global recognition 0.05 3 0.15

2. Financial performance 0.10 4 0.4

3. ECOnetic initiative 0.10 4 0.40
4. Growth in China 0.050 4 0.20

5. Adapability 0.05 3 0.15

6. Strong brand recognition 0.08 4 0.32
7. Research and Devlopment 0.05 3 0.15

8. Large network 0.075 4 0.30

Weaknesses
1. Days inventory is high 0.05 2 0.10

2. Unprofitable Europe operation 0.075 1 0.075

3. Low exposure to Asia Pacific 0.075 1 0.075
4. Product Recalls 0.075 2 0.15

5. Poor Reputation 0.06 2 0.12

6. Dependence on U.S. Markets 0.08 2 0.16
7. Weak Foothold 0.03 2 0.06

TOTAL 1.00 2.71

Strengths

Ford is a well-known brand in the automobile industry and is also recognized in

the global markets because of its success in marketing and advertising. It’s brand

value is 10 billion dollars, according to Statista in 2020. (Wagner, 2020).

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Ford has a strong financial position. In 2015, the company had a net income of

$1.9 billion, a 44% increase from the year prior. (David & David, 2017). The good

returns on capital expenditure conveys that the company is successful at execution of

new projects and generated good returns on capital expenditure by building new

revenue streams.

ECOnetic initiative is an effort to improve existing engines by producing highly

fuel-efficient engines. The Ford Fiesta is the result of the initiative, currently the lowest

emitting mass-produced car in Europe. Along with, the Ford Focus ECOnetic that has

better fuel consumption than the Toyota Prius.

Another strength is the considerable growth in China. Especially with China

being the largest automobile market in the world. The company opened a research

and engineering sector in China as well.

Adaptability is one of Ford’s key strengths. Ford has a large product and

services portfolio which gives them strong leverage and less dependency on just one

product range. Their commitment to adopting new technologies also gives them a

boost in the competitive automobile market.

Over the years Ford Motor Company has invested in building a strong brand

portfolio. This can be extremely useful if the organization wants to expand into new

product categories.

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Ford’s research and development is one of its key strengths because the

company is committed to make and develop new products. They are continuously

trying to improve the performance of their vehicles. The factors that are evaluated

include fuel, efficiency, safety, and customer satisfaction.

Ford motor Company has a large network and caters to all kinds of

demographic groups with their diversified brands and car models. They take care of

the needs and wants of their consumers by providing them with more variety of cars

and commercial vehicles. They have a manufacturing presence in 62 countries,

exemplifying their diversity in operations and distribution. Ford develops its cars on

standardized procedures. They also invest heavily in various fuel sources.

Weaknesses

Days inventory is high compared to the competitors. This results in forcing the

company to raise more capital to invest in the channel. This can impact the long term

growth of the company.

Ford Motor Company has large operations in Europe. The car sales in Europe

have been stagnant in recent years. Unprofitability is an extreme weakness. In 2012,

Ford lost $1.75 billion in Europe.

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Only 15.82% of Ford’s volume was derived from Asia-Pacific sales in 2011.

From 2010 to 2011 the business had a 7.52% growth.

Product Recalls are an undeniable weakness. Ford faced a huge loss and their

brand image suffered due to the product recalls back in May 2016. They recalled

approximately 830,000 Ford and Lincoln vehicles to replace faulty side door latches.

(CNBC, 2016).

Ford has a poor reputation compared to its European and Japanese

competitors. Lincoln, is widely considered an inferior product to British and Germany

luxury cars, even in the United States.

Another weakness Ford Motor Company has is it’s dependence on U.S.

Markets. Predictions state that the majority of future car sales will result from emerging

markets such as China and India.

Because of Ford’s operations being so diversified in many geographical areas,

they lack focus in performance and productivity. They do not have a stronghold in

emerging markets like India.

Industry Analysis

Porter’s Five-Forces Analysis

According to the developer, of Porter’s five-forces, Michael Porter, a Harvard

Business School professor, the nature of competitiveness in a given industry can be

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viewed as a composite of five forces. These factors are rivalry among competing firms,

potential entry of new competitors, potential development of substitute products,

bargaining power of suppliers, and bargaining power of consumers. (David & David,

2017).

Rivalry Among Competing Firms

Rivalry among competing firms is usually the most powerful of the five

competitive forces. The strategies pursued by one firm can be successful only to the

extent that they provide competitive advantage over the strategies pursued by rival

firms. (David & David, 2017). The automobile industry contains a very strong rivalry

among existing firms. Due to the rapid changing consumer demands, competition

increases. An increase in market growth, also, increases rivalry because firms will

compete for market share in emerging markets. The diversity of existing firms allows

some companies to have a competitive advantage over others. Companies face the

rivalry hoping they have a fighting chance because the barriers to exit are strong.

Some of Ford Motor Company’s strongest competitors are General Motors

Company, Toyota Motors, Tata Motors, Daimler, Hyundai Motors, Honda, Tesla Motors

and Volkswagen. With the production of 6.4 million vehicles in 2016, Ford motors are

the fifth largest automobile manufacturer in the world. As a part of its strategic growth

plan, Ford has acquired majority of artificial intelligence start-up “Argo-AI” in 2017, self

driving cars, and eco-centric vehicles; proving that diversifying a firm allows a

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competitive advantage. They also plan to trim workforce by 10% in Asia and US as

well as save $3 billion through cost reduction measures. These factors will influence

Ford’s position in the automobile manufacturing industry. (Bhasin, 2018).

Potential Entry of New Competitors

Whenever new firms can easily enter a particular industry, the intensity of

competitiveness among firms increases. Barriers to entry, however, can include the

need to gain economies of scale quickly, the need to gain technology and specialized

know-how, the lack of experience, strong customer loyalty, strong brand preferences,

large capital requirements, lack of adequate distribution channels, government

regulatory policies, tariffs, lack of access to raw materials, possession of patents,

undesirable locations, counterattack by entrenched firms, and potential saturation of

the market. (David & David, 2017).

The automobile industry is not particularly easy to enter. The economies of scale

is difficult to achieve in the industry in which Ford Motor Company operates. The

makes it easier for those producing large capacitates to have a cost advantage. It also

makes production costlier for new entrants. This specialized industry requires

enormous capital investment for factory facilities, machinery, labor, and technology.

The cost of entering into the market increases its barrier to enter and exit. There is not

a lot of threat from new entrants due to the industry being so massive and mature.

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New entrants would have to mass-produce their automobiles, reaching the economies

of scale of major competitors, in turn, raising the stakes of entering. Government

policies/regulations within the industry require strict licensing and legal requirements to

be fulfilled before a company can start selling. The threat of new entrants is a weak

force.

Ford Motor Company can take advantage of the economies of scale it has

within the industry, fighting off new entrants through its cost advantage. The company

can also focus on innovation to differentiate its products from that of new entrants.

They can also promote their company by spending more on marketing to build a

stronger brand identification.

Potential Development of Substitute Products

Public transportation/bicycles are the biggest threats for substitute because

trains and busses are affordable to almost everyone, worldwide. Customers are limited

to where they can travel with public transportation, so it cannot be a full-time

substitute. The component of quality and design can be a decisive factor when it

comes to selecting a substitute, which has been a focal point for Ford, providing it an

edge. (Ford Motor Company, 2020). Ford faces moderate level of threat from

substitute products.

Bargaining Power of Suppliers

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The suppliers in the automotive industry include the firms engaging in business

transactions pertaining to automobile parts as well as the raw materials. Compared to

the buyers, the number of suppliers in the industry in which Ford Motor Company

operates is abundant. Therefore, the suppliers have less control over prices. If a

supplier isn’t able to perform adequately, the supplier will fail and be replaced. The

large scale of the company benefits in reducing the bargaining power of the suppliers,

but the presence of alternate buyers strengths the supplier position in the industry,

leading to moderate level of bargaining power.

Bargaining Power of Consumers

Ford Motor Company consists of a supply chain, globally. The customers of the

company include individual buyers as well as rental buyers, each having a different

bargaining power. The consumers influence the company prices, effecting the

profitability of the business. The buyers have a few firms to choose from, and

therefore, do not have control over prices. However, customers do have the ability to

leverage themselves with companies due to the information available to customers

about the differentiated products; quality, fuel efficiency, price, warranty, etc. With

sales expecting to grow and new products being manufactured, customers are going

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to have a bigger variety of products to choose from, increasing their buyer power

because firms are trying to meet customers’ changing demands.

Competitive Strategies

SWOT Matrix

Strengths
Weaknesses

1. Brand equity and image

1. Declined net income

2. Eco-Friendly cars
2. Highly dependent on US
3. Strong supply chain
market

4. Research & Development

3. Declining sales in China

5. Strong position in US market

4. Higher costs compared to
competitors

5. Slow innovation process

Opportunities
SO Strategies
WO Strategies

1. Digital marketing
1. Utilize brand image and 1. Launch and market self
2. Self driving vehicles
equity along with focusing on driving car to increase China
3. Asian markets low exposure
marketing strategies to grow sales. W3, O1, O2

4. Partnerships for expansion

the Asian market. S1, S4, 2. Take advantage of cost
5. Cost reduction through O1, O3
reductions to increase net
strategic supply chain 2. Capitalize on increasing fuel income. W1, O5
management prices by emphasizing fuel-
efficient cars. S2, S4, O2, O4

Threats
ST Strategies
WT Strategies

1. Competitive pressures
1. Increase diverse products to 1. Increase innovation speed to
2. New entry of high-tech firms
combat competitive address aggressive
3. Regulatory threats
pressures. S4, T1
competition and the entry of
4. Rising prices of raw 2. Maintain a strong position in high tech firms. W5, T1, T2

materials (Fluctuating oil the US Market to avoid 2. Expand manufacturing

prices)
regulatory threats. S4, S5, network and improve
5. Economic fluctuations in key T1, T3 economies of scale, to lower
markets costs and prices. W4, T1, T5

SWOT Analysis

Ford Motor company is one of the largest vehicle manufacturers worldwide. The

company’s main opportunities include growth through production development along

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with utilizing digital technologies for marketing. Major threats include the extreme

competition and entry of new high tech firms.

Ford Motor Company’s strengths include a strong and successful position in the

US market along with maintaining brand equity. Weaknesses are also present; in 2018,

the net income declined tremendously from year prior, 60% of the net revenue is from

the US, therefore the company is highly dependent upon the country, along with, a

significant decline of sales in China. SWOT analysis assists a strategic planner by

balancing and looking for opportunities and strengths, to offset the weaknesses and

threats.

Strengths

By focusing on innovation, passenger safety and product quality, Ford has

received a strong brand image. The strength is significant to the automotive industry

because it translates into customer loyalty due to the high level of popularity. Brand

equity is all the more important to retain sales, revenues and leadership position. Apart

from concentrating on technology and customer experience, the brand has also built

its leadership position through branding and marketing. Strong brand equity and image

has resulted in consistent performance along with a strong competitive advantage.

Pertaining to objective in question, a strong position in the US market is

certainly a strength. However, depended upon so much, is also a weakness. The US

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is Ford’s leading market as well as its largest source of revenue for the brand.

Traditionally, its sales in the US market has remained strong.

Weaknesses

There are several weaknesses faced by Ford Motor Company. Net income of

the company went through a major decline in 2020 and 2019. MacroTrends reported

that there was a 98.72% decline in 2019 from 2018. Along with, 110.17% decline in

2020 from 2019. (MacroTrends, 2020). The fall in net income could be attributed to

growing prices of raw materials, decline in overall unit sales, unfavorable exchange

rates, along with higher spending due to product recalls.

China has become the leading automotive market of the world. Over the past

five year, the position of Ford Motors in the Chinese market has continued to weaken

as sales have continued to fall in this market. As Ford’s second-largest market, the

weakening position in China is an important concern for the brand. In 2017, records

show that the annual Ford sales in China declined 11.73%, 2018 there was an

astonishing 54.34% decline, along with, 2019 drastic decrease of 39.36%. (Demandt,

2020). Continuously falling sales in the leading auto market of the world suggests

significant concern for Ford Motors.

Opportunities

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Many of the opportunities presenting themselves to Ford Motor Company are

linked to growth and expansion. Ford has the opportunity to work within a strategic

alliance with other firms attributed to entering new markets. Ford must focus on

growing its sales in the Asian markets to grow its profits and net income. China has

become the leading automotive market of the world. Meanwhile, India is also seeing

growth in demand for automotive. With growing markets, Ford has the opportunity to

capitalize and implement itself through strategic alliances of joint-ventures within these

emerging markets.

Increasing fuel prices will give Ford an opportunity to capitalize because of the

company’s emphasis for eco-friendly/ fuel-efficient cars. Ford’s investment and

production plan of fully autonomous vehicles for commercial use also presents

significant opportunities and can offer a profitable option to Ford for growing sales and

profits faster.

Based on automotive companies using digital technologies for marketing and

branding as well as customer engagement. The opportunities are vast in regards to

digital marketing for Ford’s brand. The digital concept can help with driving sales,

building/strengthening customer connection, staff engagement, and supply chain

management.

Threats

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Many of the threats of Ford Motor Company stem from the fact that the

automotive industry is extremely competitive. The industry continues to intensify which

means higher pressure related to product design, quality, innovation and marketing.

Ford may find itself struggling to maintain a steady customer base while struggling to

retain its creative role in the market.

Another concerning threat is of technology firms like Google and Apple, with

their efforts to make driverless cars that would compete against Ford’s products. The

battle for providing best products with the lowest prices may impact the profit margins

significantly.

The instability of oil prices threatens the sales performance of Ford’s products,

which majority have internal combustion engines. On the other hand, a decrease in

gas prices could change consumer’s demand from a small, fuel-efficient car to pick-up

truck. 32% of citizens surveyed say they would replace their vehicle with one that is

fuel-efficient if gas prices reach $6. (Jacobe, 2011). If Ford and the automobile industry

faces an increase in raw materials, then the vehicles price would increase, which could

hinder the firms’ operating profits.

The rising regulatory pressures in the international market is another threat

affecting the level of sales and profitability of Ford Motors. Rising regulatory pressures

are leading to compliance related pressures and causing profits to decline. Trade wars

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between US and China are already causing heavy pressures and have led to reduction

in sales.

Matching Strategy to Internal and External Conditions

Matching techniques allow for individuals to identify a strategic plan for the

company, based on the current environmental factors. For this evaluation of Ford

Motor Company, the SWOT Matrix was utilized, which provides the ability to match

strengths, opportunities, weaknesses and threats. By matching the strengths with

opportunities, weaknesses with threats, strengths with threats, and weaknesses with

opportunities; strategies can be developed to generate strengths and opportunities

while reducing weaknesses and threats.

The SWOT matrix below shows Ford Motor Company’s key strengths,

weaknesses, opportunities, and threats. There are eight strategies that could be

integrated to promote growth and profitability.

SO Strategies

Ford motor company can apply their internal strengths to take advantage of

external opportunities. The company can utilize equity by investing in Asian engineers

and Research & Development. Asia operations can reorganize and accelerate to

profitable growth. Strategizing with research and development can lead to diversifying

options by launching new vehicles. It is part of Ford China’s commitment to launch 50

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new vehicles by 2025. (Ford Media, 2018). The company can create a new joint

venture with Zotye for a new line of small battery-electric vehicles. (Ford Media, 2018).

Additionally, Ford can form other strategic alliances to explore areas of cooperation in

AI, connectivity and digital marketing.

Ford Motor Company has the opportunity to grow and expand through market

penetration and product development. For instance, innovation to introduce new

products to satisfy environmental concerns. The company has detailed research of

lowering fuel emissions, investing in autonomous driving and increasing fuel efficient/

electric vehicles. The company can capitalize on the increasing fuel prices due to it’s

emphasis on fuel efficient and autonomous cars. These cars are full of opportunities

and can offer a profitable option to Ford for growing sales and profits faster.

Commodity prices are growing every year. In 2018 their direct effect was felt on the net

income of Ford Motors. This strategy suggests that Ford focuses on R&D regarding

fuel efficient cars and autonomous driving, then the company can take advantage of

the annual rise in commodity prices.

WO Strategies

Ford can improve the falling sales in China by launching and marketing the self-

driving car. Ford has been investing heavily on electrical cars and artificial intelligence

in vehicles. That particular industry is valued at 36 billion US dollars. China represents

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approximately 30% of global car sales. (Wagner, 2020). Ford has cut production in

China, however, with this strategy and focused R&D, this may turn out to be very

effective. This strategic plan is promising, due to China’s recent rise in the sales of

electric vehicles. (Shane, 2019).

In order for Ford to improve it’s net income, the company must take advantage

of cost reductions. The consequence of pursuing a cost-minimization strategy is a

reduced ability to make innovative changes and to respond to competitors. Because

manufacturing costs vary directly with weight, Ford can utilize lighter material for

certain components. The company can also accomplish savings by building modern

plants, extracting higher volumes from existing plants, obtaining economies in

purchased parts, and gaining efficiency through great division of labor. (Abernathy &

Wayne, 1974). By reducing costs Ford can achieve economies without increasing the

rate of capital intensity.

ST Strategies

One of the key strengths of Ford is research and development. Ford has shown

large and consistent interest over the years demonstrating with it’s massive

investments. For instance, R&D expenditures came to about 7.4 billion U.S. dollars in

2019, putting an end to the gradual increase in R&D efforts of the past three years,

which had consistently been in the range of about one third of gross profits. Ford

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funded 8.2 billion U.S. dollars in 2018, and 8 billion in 2017. (Wagner, 2020). Ford is

working on a new fleet of electric vehicles with a goal of having sixteen plug-in electric

vehicles models to market in 2022. (Wagner, 2020). Another focus, Ford’s research and

development department can focus on is artificial intelligence. Autonomous cars are

expected to become a large market by 2025, valued at 36 billion U.S. dollars. (Wagner,

2020). Increasing diversity with assistance from R&D can alleviate competitive

pressures.

Due to a key threat of increased global regulations, Ford should continue to

maintain a strong position in the US market. Both, in the US, and globally, trade wars

between countries and an increasing level of regulatory inconveniences are also

contributing to the performance decline of Ford. Ford’s customers show loyalty

because the brand has built a strong image whose main focus is the convenience and

safety of passengers. Ford Motor Company sells approximately 2.4 million motor

vehicles annually in the United States. The Ford brand is one of the highest valued

automotive brands in the world, particularly when compared to its American

competitors. (Wagner, 2020).

WT Strategies

Ford can increase innovation in order to reduce aggressive competition and the

threat of new entries. Ford can take advantage of the growing needs of public

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 Ford Motor Company

transports, millennials consider public transportation as the best option for digital

socializing and among the best for connecting with communities. Ridership has

increased 28% since 1995. (APTA, 2020). Ford can also capitalize with, utility vehicles,

manufacturing buses in India or Africa, or even oil tankers for oil producing countries.

This would not be bizarre for the company, in 1918, Ford built boats, helmets, tanks,

airplane engines, ambulances, and tractors for WWI. (Ford Motor Company, 2020).

The company can improve economic efficiency from carrying out production on

a larger scale. To lower costs, Ford can; redesign product, cutting out unnecessary

parts, standardize on a single “universal product”, use lighter materials, automate

tasks, and strategically plan to maximize the specialization of workforce. Ford should

focus on volume with production facilities and manufacturing networks, achieving both

that are larger than the company’s rivals. Another variable with improving economies of

scale is to concentrate on innovation and growing its presence in Asia. Partnering with

local brands in the Asian markets could help Ford find faster growth. Expanding

manufacturing networks and lowering costs/prices will improve economies of scales.

Financial Analysis

Growth Rates

A firm’s growth rate is dependent upon many different factors. The most significant

factors pertaining to the company’s growth includes sales revenue and net income.

Ford Motor Company’s current sales/revenue growth rate is a 1.38% increase year-

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over-year. (MacroTrends, 2020). However, Ford Motor Company is doing well

compared to the auto manufacturer industry as a whole, which is experiencing a

-1.35% growth rate for sales/revenue. (MSN, 2020).

Net income reflects the total residual income that remains after accounting for all

cash flows, both positive and negative. A company’s profit is called net income, or

bottom line. Net income is one of the most important financial metric, reflecting a

company’s ability to generate profit for owners and shareholders. Ford Motor Co.

achieved in the third quarter, above company average, net income of 465.01% year on

year. Among companies who have reported third quarter results in the auto

manufacturers industry only one company has achieved higher year on year net

income results in the third quarter. (MacroTrends, 2020). Net income for the 2019 was

at -96.00, while the industry was higher at -55.58. (MSN, 2020). These negative figures

tell us that the auto manufacturing industry is struggling to remain profitable, and Ford

Motor Company is worse than the industry average.

Price Ratios

Price ratios correspond directly to the stock market. Investors have the

opportunity to buy into public companies by purchasing stocks, or shares. Price ratios

help us to understand where a company stands regarding value within the market.

Firm’s financial strength

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 Ford Motor Company

The Price/Book value ratio for Ford Motor is 0.85. (MacroTrends, 2020). Any

value under one is considered a strong P/B value, indicating this is where the firm is

financially strong.

The Current Price/Earnings (P/E) ratio represents the amount that investors will

currently pay for shares of the company. A high P/E ratio could mean that a company’s

stock is over-valued, or else that investors are expecting high growth rates in the

future. (Hayes, 2020). Ford Motor Company’s current P/E is 40.21 (MacroTrends, 2020),

while the industrial average has not been established yet. (MSN, 2020).

Firm’s financial weakness

Price/Sales Ratio (PSR) is a valuation ratio that compares a company’s stock

price to its revenues. It is an indicator of the value that financial markets have placed

on each dollar of a company’s sales or revenues. (Hargrave, 2020). Ford Motor

Company’s PSR is currently at 0.20; less than the industrial average of 0.77. (MSN,

2020). This tells us that investors were not willing to pay as much for Ford Motor

Company as they were to other auto manufacturers in the industry. Price/Sales Ratio

indicates that this is where the firm is most financially weak.

Profitability Ratios / Profit Margins

Profitability ratios show how efficiently a company generates profit and value for

shareholders. It is important to know both a company’s earnings as well as expenses,

as profitability is a key indicator to potential investors as to a good or poor investment.

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The profitability ratios discussed pertaining to Ford Motor Company will include pretax

profit margin and net profit margin.

A company’s pretax profit margin measures the operating efficiency of a

company before deducting taxes. To boost profitability, management teams must strike

a balance between increasing sales and reducing costs. Pretax profit margins give us

an indicator of how successful companies are at achieving this goal. For investors, one

of the most common and useful measures to gauge corporate profitability is to look at

profit margins. (Liberto, 2019). Ford Motor Company’s current pre-tax margin is

-0.41%, compared to an industry average of 4.73%, meaning that the company is less

profitable than other companies in the industry, when considering earnings prior to

taxes. (MSN, 2020).

Net profit margin is also referred to as a company’s bottom line. The net profit

margin is the ratio of net profits to revenues for a company. This key ratio illustrates

how much of each dollar in revenue collected by a company translates into profit.

(Murphy, 2020). Ford Motor Company has a current net profit margin of 0.11%; much

less than the industry average of 3.01%. (MSN, 2020). With this information, one can

conclude Ford Motor Company is below average when it comes to maintaining profits

after considering expenses.

Financial Condition

By using the current ratio, quick ratio, interest coverage, debt/equity ratio and

book value per share, the financial condition of a company can be measured. We will

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look at debt/equity ratio and book value per share to make assumptions on Ford Motor

Company’s financial condition.

Book value per share (BVPS) is a method to calculate the per-share book value

of a company based on common shareholders’ equity in the company. The book value

of a company is the difference between that company’s total assets and total liabilities.

This ratio measures the amount a shareholder would received if the company were to

be liquidated, and is based and calculated on the company’s outstanding shares at the

end of the year. If a company’s BVPS is higher than its market value per share, then its

stock may be considered to be undervalued. (Hayes, 2020). Ford Motor Company’s

book value per share is $8.09, the industry average comes in at $3.45. (MSN, 2020).

Can the firm raise short-term capital?

Debit-equity ratio is used to evaluate a company’s financial leverage. The ratio

shows to us the proportion of equities and debts that the company uses for financing

assets. This ratio is calculated by dividing its total liabilities by stockholders’ equity.

(Hayes, 2020). Stockholders are interested in this calculation in particular as they are

looking for the value of the company to increase. As a company’s value increases, so

does the company’s stock value. (MSN, 2020). Ford Motor Company’s debt/equity

ratio 3.21, whereas the industrial average is 1.08. (MSN, 2020). Ford is not doing as

well as the industry average. The higher ratio suggest higher risk and that the

company is financing its growth with debt. With the debt/equity ratio 3.21, it may be

difficult for Ford to raise short term capital. The current ratio is favorable at 1.34,

indicating Ford can raise needed short-term capital.

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Does the firm have sufficient working capital?

Fords current ratio of 1.34 indicates that Ford does currently have sufficient

working capital. Ford can cover its current liabilities 1.34 times with its current assets.

When comparing to the industry average, 1.20, Ford is doing well.

Investment Returns

Due to numerous ratios investment returns can be monitored. Tracking these

return ratios assist investors within the corporation with understanding where the

investments are least and most effective. Investment ratios discussed are return on

equity, return on assets and return on capital.

Return on Assets is calculated by dividing Net Income and Average Total Assets.

This metric is an indicator of how well a company utilizes its assets, by determining

how profitable a company is relative to its total assets. The higher the ratio the better,

as this shows that the company is more efficient in asset utilization. (Hargrave, 2020).

Ford Motor Company has a return on asset ratio of -0.02%, remarkably low when

compared to the industrial average of 3.45%. (MSN,2020). As a result of increasing this

ratio to a more favorable figure, Ford will need to improve asset utilization.

Return on Equity is calculated by dividing net income by shareholders’ equity.

Return on Equity measures how the profitability of a corporation in relation to

stockholders’ equity. With this information, analysts are able to foresee how quickly a

company could turn debt into returns, if necessary. (Hargrave, 2020). Ford Motor

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Company has a return on equity ratio of 0.-20%, a low percentage compared to the

industry average of 6.70%.

Are capital budgeting procedures effective?

Return on capital is the amount of return a company makes above the average

cost it pays for its debt and equity capital. It’s used to assess the company’s efficiency

at allocating the capital under its control to profitable investments. (Kenton, 2020).

Ford Motor Company’s return on capital as a 5 year average is 3.01%; lower than the

industrial average of 5.97%. With a negative return on capital of -1.22 it is suggested

that Ford is losing money. (MSN, 2020). Ford is experiencing a smaller return on

capital than the car manufacturing average. Return on capital, return on equity, and

return on assets all indicate that the capital budgeting procedures are not effective.

Are dividend-payout policies reasonable?

The board of directors of Ford Motor Company declared $0.15 per quarter

dividend on the company’s outstanding Class B and common stock. The company is

paying out respectable dividend, however, in long term this may not be able to

continue.

Management Efficiency

Ford Motor Company’s income per employee is reported to be $920.31. The

industry average is $8.65k. (MSN, 2020). This establishes that Ford is likely not making

the revenues necessary to compensate employees at a competitive rate. The company

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will not likely employ the greatest talents in the car manufacturing industry. This is a

sure disadvantage for Ford. Employees are making roughly half of what they could

elsewhere in the industry. Low salaries could lead to high turnover rate.

Five-Year Summary

From 2016- 2018 Ford’s total revenue slightly increased year after year.

Between 2018 and 2019 it decreased from $160.3B to 155.9B. (FordNews, 2020).

Operating income is a measurement that shows how much of a company’s

revenue will eventually become profits. A company that’s generating an increasing

amount of operating income is favorable because it suggests that the management is

generating more revenue while controlling expenses, overhead, and production costs.

(Hayes, 2020). In 2016, the company had an operating income of $5,786M then it had

decreased to $4,881M in 2017. 2018 it decreased to $3,203M and then was

tremendously knocked down in 2019 with a figure of $519,000. (MSN, 2020).

Ford’s net income history runs parallel to the operating income. In 2016,

$4,589M is recorded which increases in 2017 to $7,731M. In 2018, it begins to decline

ending at $3,677M. Then drastically drops to $47,000 in 2019. (MSN, 2020).

The fact that Ford’s income is decreasing along with revenues suggests that the

profit margin is also decreasing. If Ford could boost revenues and income, the

company would be in a much better financial position for years to come.

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There is only one analytical technique designed to determine the relative

attractiveness of feasible alternative actions. The Quantitative Strategic Planning
Matrix indicates which alternative strategies are best.

QSPM Matrix

QSPM STRATEGIC ALTERNATIVES

Expand
Improve manufacturi Develop
the Asian ng network diverse
Market product

Key
Factors Weigh
t AS TAS AS TAS AS TAS
Opportun
ities

1 Green Vehicles
0.15 4 0.6 4 0.6 3 0.45

2 Increasing fuel 0.10 - - - - - -

prices
3 New emission 0.025 - - - - - -
standards
4 Strategic 0.10 3 0.30 2 0.20 3 0.30
partnership
5 New taxation policy 0.05 2 0.10 2 0.10 3 0.15

6 Increasing 0.05 4 0.20 4 0.20 4 0.20

customer base
7 Self-driving car 0.15 3 0.45 4 0.60 4 0.60

8 Global market 0.10 3 0.30 3 0.30 2 0.20

share grew to 7.6%

Threats

1 Decreasing fuel
prices 0.05 2 0.10 2 0.10 4 0.20

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 Ford Motor Company

2 Rising raw material

prices 0.05 3 0.15 4 0.20 4 0.20

3 Intense competition
0.025 4 0.1 3 0.075 3 0.075

4 Fluctuating
exchange rates 0.05 4 0.20 3 0.15 1 0.05

5 Increasing trend of
isolationism 0.025 4 0.1 3 0.075 2 0.05

6 Regulations
0.05 3 0.30 4 0.20 2 0.20

7 Growing presences
of German and
0.025 1 0.025 2 0.05 2 0.05
Japanese
automakers
Strength
s
1 Global recognition
0.05 3 0.15 4 0.20 4 0.20

2 Financial
performance 0.10 3 0.30 4 0.40 4 0.40

3 ECOnetic initiative
0.10 2 0.20 4 0.40 4 0.40

4 Growth in China
0.05 4 0.20 3 0.15 2 0.10

5 Adapability
0.05 2 0.10 2 0.10 3 0.15

6 Strong brand
recognition 0.08 3 0.24 4 0.32 3 0.24

7 Research and
Development 0.05 4 0.20 4 0.20 4 0.20

8 Large network
0.075 3 0.225 4 0.3 3 0.225

Weaknes
ses
1 Days inventory is
high 0.05 - - - - - -

2 Unprofitable Europe
operation 0.075 - - - - - -

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3 Low exposure to
Asia-Pacific 0.075 4 0.3 4 0.3 2 0.15

4 Product Recalls
0.075 - - - - - -

5 Poor Reputation
0.06 - - - - - -

6 Dependence on
U.S. Markets 0.08 2 0.16 3 0.24 3 0.24

7 Weak Foothold
0.03 - - - - -

TOTA
L 5.00 5.46 5.03

Strategic Alternatives

The Quantitative Strategic Planning Matrix (QSPM is a tool that allows

strategists to evaluate alternative strategies objectively, based on previously identified

external and internal key success factors. This planning involves taking the strengths,

weaknesses, opportunities and threats, and assessing a weight to each factor of the

IFE and EFE, assigning attractiveness score based on the effect that each component

could have on the presented strategy. At the bottom of the QSPM, The sum total

attractiveness scores (STAS) reveals which strategy is most attractive in each set of

alternatives. Higher scores indicated more attractive strategies, considering all the

relevant external and internal factors that could affect the strategic decisions. (David &

David, 2017).

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Three alternative strategies were complied in the QSPM model. These

strategies were; improve the Asian market, expand manufacturing network, and

develop diverse products. Each of the individual strategies have the potential to satisfy

opportunities that will improve global customer satisfaction, revenues and market share

for Ford Motor Company.

The first strategic alternative presented in the QSPM is the opportunity to

improve and grow the Asia-Pacific market. Ford needs to fight to gain ground in Asia-

Pacific territory. China, alone, represents 30% of global car sales. (Wagner, 2020).

India is also seeing a growth in demand . By fulfilling it’s commitment to launch 50 new

vehicles in the Asia-Pacific market, focus on R&D, and work within a strategic alliance

with other firms, Ford has the ability to increase profit and net income with this growth

and expansion. The total attractiveness score for this alternative was 5.00.

Porter’s Type 3 generic strategy of differentiation would be utilized with this

specific alternative, for this strategy aims to provide unique services to the Asia-Pacific

market. (David & David, 2017). Expanding the Asia-Pacific market has potential to be

very prosperous, however, it may be just as difficult, as new Chinese-based auto

companies are formed and grow to prominence. (David & David, 2017).

The second alternative strategy reviewed, expanding the manufacturing

network, has remained the highest of the three proposed alternatives. With a total

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attractive score of 5.46. Expanding/advancing manufacturing networks will continue to

assist research, product development, extract higher volumes, potential joint ventures,

enhance supply chain along with much more. By carrying out production on a larger

scale, the company can improve economic efficiency and lower costs, compared to

competition. Therefore, Ford Motor Company is utilizing Porter’s Type 2 Cost

leadership best value strategy. This strategy would allow the company to offer

products at the lowest available prices in comparison to the competition.

The third alternative strategy reviewed is developing diverse products. Under

this strategy, Ford would conduct extensive research and development in order to

separate their new, innovative products from competition. The automotive

manufacturing industry is extremely competitive and this could help set Ford apart.

This strategy focuses on differentiating the company, using Porter’s Type 3 generic

strategy, differentiation. The total attractiveness for developing new products was mid-

level at 5.03.

Recommendation

The strategic alternative with the greatest Total Attractiveness Score is that of

expanding the manufacturing network. This strategy will improve economies of scale

which will lower costs and more importantly the price of Ford’s products. The

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alternative holds the highest Total Attractiveness Score, as well as helps to cover many

factors in the SWOT, IFE, and EFE matrices.

Developing a larger manufacturing network would allow Ford Motor Company to

gain additional market share in the growing middle class demographics while reducing

costs.

A strategy to expand manufacturing networks and improve economies of scale

will counter the higher costs Ford exemplifies when compared to competitors. This will

improve the working capital position of the company, therefore, potentially reverse the

decline of net income they have been experiencing.

In addition to maximizing profits, a strategy of expansion and growth would take

advantage of Ford’s strengths and opportunities, while reducing many of the threats

and weaknesses that the company is facing.

Ethical and Social Responsibility

Ford Motor company remains to have a moral and ethical responsibility towards

customers, communities, and environments. Ford has 61 manufacturing facilities

worldwide. A total of 39 are part of its zero waste fill program. This company must be

careful when expanding manufacturing networks, paying attention to the small details

that could negatively influence customers, communities and the environment.

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Implementation Plan

Ford Motor Company will have a strong implementation plan, which will include

communication through various platforms, companywide. Implementing the plan of

expanding in the electric and autonomous vehicles market, focusing on the largest

automotive market, China. The meetings will discuss marketing strategies, operational

impacts, research and development and financial implications. In China, Executive

Chairman Bill Ford and CEO Jim Hackett will share the vision of China’s expansion

strategy with employees, customers, dealers and government officials.

Peter Fleet, President of Ford Asia Pacific, will go over the financial and

operational planning. This will explain the focus of the plan as well as the requirements

for each division.

Ford Motor Company will hold meetings each quarter to discuss status of the

project, expected versus actual timelines, budget plans, along with any positive or

negative implications as to how various factor will affect the timeline. Ford’s executive

group will also take these meetings as opportunities to discuss any further updates or

issues.

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Ford will follow an organizational structure. The company will divide the tasks

according to business department, guaranteeing efficiency. Tasks will be divided to the

following departments; Marketing, Finance, Operations, and Human Resources.

Executives:

• Communicate clear objectives to investors, partners, and employees. Promote

transparency, ensuring all members fully understand their goals and outcomes.

• Follow progression of timeline and maintain accuracy. Keep all team members up to

date with new updates that affect the plan.

Finance:

• Obtain funding required to implement expansion in China.

• Secure permits, licenses and contracts.

• Monitor financial status throughout the implementation of the project.

Marketing:

• Conduct research, look at the competitive information gathered and analyze trend

data.

• Launch marketing campaign to target market. Utilize online and offline channels.

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Research & Development:

• Draw conclusions of the Chinese market, incomes and abilities, the smart vehicle

data and accessibility.

• Draw conclusions of road conditions and driving behaviors to develop a technology

solution for autonomous vehicles.

Human Resources:

• Ensure work force is educated and thoroughly understands the proper protocol for

expansion

• Monitor status throughout the entire process. Hire necessary workers and conduct

training.

Financing

There are three alternatives for Ford Motor Company to raise capital: debt,

equity or a combination of debt and equity. To consider the financing options for

expanding in the electric and autonomous vehicles market, the following assumptions

have been considered in the EPS/EBIT analysis:

• Amount Required: 750 Million

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• EBIT Range: $2 - $10 Billion

• Interest Rate: 5%

• Tax Rate: 15%

• Stock price: $8.75 per share

• Shares outstanding: $4 Billion

EPS/EBIT Analysis (In Thousands) 


Common Stock Financing Debt Financing

Recessio Normal Boom Recessio Normal Boom

n n

EBIT 2,000,000 5,000,000 10,000,000 EBIT 2,000,000 5,000,000 10,000,000

Interest - - - Interest 37,500 37,500 37,500

EBT 2,000,000 5,000,000 10,000,000 EBT 1,962,500 4,962,500 9,962,500

Taxes 300,000 750,000 1,500,000 Taxes 294,375 744,375 1,494,375

EAT 1,700,000 4,250,000 8,500,000 EAT 1,668,125 4,218,125 8,468,125

Shares 4,085,714 4,085,714 4,085,714 Shares 4,000,000 4,000,000 4,000,000

EPS 0.4161 1.0402 2.0804 EPS 0.4170 1.0545 2.1170

70% Stock - 30% Debt

Recession Normal Boom

EBIT 2,000,000 5,000,000 10,000,000

Interest 11,250 11,250 11,250

EBT 1,988,750 4,988,750 9,988,750

Taxes 298,312.5 748,312.5 1,498,313

EAT 1,690,437.5 4,240,437.5 8,490,437

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 Ford Motor Company

70% Stock - 30% Debt

EAT 1,690,437.5 4,240,437.5 8,490,437

Shares 4,060,000 4,060,000 4,060,000

EPS 0.4164 1.0444 2.0912

70% Debt- 30% Stock

Recession Normal Boom

EBIT 2,000,000 5,000,000 10,000,000

Interest 26,250 26,250 26,250

EBT 1,973,750 4,973,750 9,973,750

Taxes 296,063 746,063 1,496,063

EAT 1,677,687 4,227,687 8,477,687

Shares 4,025,714 4,025,714 4,025,714

EPS 0.4167 1.0502 2.1059

The analysis shows that each of the four financing options hold very comparable

EPS results. However, debt financing shows the greatest EPS, at .4170 in a recession,

1.0545 in normal economic conditions, and 2.1170 in a boom economy. Trailing

closely behind debt financing in order of greatest to least EPS are 70% Debt/30%

Stock, 70% Stock/30% Debt, and finally Common Stock Financing.

Projected Financial Statement

Ford Motor Company Pro Forma Projected Income Statement

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 Ford Motor Company

Projected Income
Statement
2020 2021 2022 2023

Sales 130,907,000 163,633,750 204,542,187.5 255,677,734.4

Cost of Goods Sold 114,489,000 187,099,226.2 233,874,032.8 292,342,541

Gross Margin 16,418,000 -23,465,476.2 -29,331,845.3 -36,664,806.6

Selling Expense 13,090,700 16,363,375 20,454,218.75 25,567,773.44

Administrative 6,545,350 8,181,687.5 10,227,109.38 12,783,886.72

Expense

Earnings before 19,636,050 24,545,062.5 30,681,328.13 38,351,660.16

interest and taxes

Interest 37,500 37,500 37,500 37,500

Earnings before taxes 19,598,550 24,507,562.5 30,643,828.13 38,314,160.16

Taxes 9,799,275 12,253,781.25 15,321,914.07 19,157,080.08

Net Income 9,799,275 12,253,781.25 15,321,914.07 19,157,080.08

The projected income statement shows data ranging over four consecutive

years, reflecting an expected 25% growth in income due to the suggest strategy of

expanding in the electric and autonomous vehicle market. Expenses also increased

accordingly with the new expansion, while taxes remained at 15%

Conclusion

In conclusion, Ford Motor Company’s suggested strategy is achievable with

dedicated commitment. Implementing strong marketing campaigns will strengthen the

effectiveness of the strategic plan. Expanding into the electric and autonomous market

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allows the company to capture market share, relieve China’s declining sales, maintain

customer loyalty and promote growth and revenue.

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